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    Sunday, May 19, 2024

    Bankruptcy judge orders return of Spicer Mansion estate sale items, proceeds

    Mystic ― As expected, a U.S. bankruptcy judge has ordered that Brian Gates, the former owner of Spicer Mansion, turn over the proceeds of last month’s estate sale of the boutique hotel’s contents and “promptly surrender” possession of the hotel.

    During a hearing Tuesday in Hartford, Judge James Tancredi had indicated he would issue such an “interim order,” which he did Wednesday.

    Tancredi also announced the hearing will continue Jan. 25.

    The judge ordered that Gates and his “agents” stop removing any personal property or fixtures from the Spicer Mansion and return any items that have been removed to the trustee for Gate’s ongoing Chapter 7 bankruptcy, Bonnie Mangan.

    Within five days of the order, Gates must provide a written accounting of the items sold and turn over the proceeds of any items sold. Gates must also “cease and desist” from transferring any items to buyers who have yet to remove items from the hotel and return to such buyers any deposits or payments they made.

    Tancredi ordered that Gates, upon Mangan’s written direction, “shall promptly surrender possession of Spicer Mansion, along with any keys, codes, and security clearances.”

    Gates held a public sale of the Spicer Mansion’s contents the weekend of Dec. 17-18, prompting a response from attorneys for Chelsea Groton Bank, the plaintiff in a foreclosure action against Gates Realty Holdings, the entity that owned the hotel, and Captain’s Mansion, the entity that purchased it after a foreclosure sale.

    Chelsea Groton informed Mangan of the estate sale, Mangan testified during Tuesday’s hearing.

    Steven Mackey, the U.S. trustee assigned to Gates’ bankruptcy case, suggested during the hearing that Gates may have violated bankruptcy law in holding the estate sale without prior authorization from the Bankruptcy Court.

    Captain’s Mansion, whose principal, Walter “Sonny” Glaser, owns the Steamboat Inn in Mystic, completed the $3,050,000 purchase of Spicer Mansion on Dec. 29, paying a balance of $2,683,000, court records show.

    Glaser previously paid a $367,000 deposit.

    b.hallenbeck@theday.com

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